Mediation

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What is Mediation?

This is where a neutral mediator helps the parties to reach a compromise solution. The Mediator will try and find 'common ground' by looking at their needs and carrying offers to and fro.

When is Mediation suitable?

Mediation is only suitable if there is some hope for the parties to cooperate. Companies who are used to negotiating contracts with each other are most likely to benefit from this approach

Examples of Mediation Services:

Centre for Dispute Resolution which was set up in London in 1991-> The typical cost of a meditator is about £1,000 to £1,500 a day. This compare with potential litigation costs which are frequently over £100,000.

West Kent Independent Mediation Service-> Offers a free service that will try to help resolve disagreements between neighbours arising from such matters as noise. This service is run by volunteers who will not take sides or make judgements on the rights and wrongs of an issue.

Online Dispute Resolution-> There are increasing number of websites offering this, such as www.e-mediator.co.uk and www.mediate.com/odr.

Advantages of Mediation:

The decision need not to be a strictly legal one - sticking to the letter of the law. More likely to be based on commercial common sense and compromise.

Makes it easier for companies to continue to do business with each other in the future, and it may include agreements about the conduct of future business between the parties.

Mediation avoids the adversarial conflict of the court room and the winner/loser result of court proceedings.

A high number of cases are resolved through mediation. The Centre for Dispute Resolution claims that over 80% of cases they are asked to settle are solved.

There is also the possibility that the issue may at least be clarified, and so any court hearing will be shorter than if mediation has not been attempted.

Disadvantages of Mediation:

There is no guarantee the matter will be resolved, and it will then be necessary to go to court. -> In such situations there is additional cost and delay to resolution.

Successful mediation requires a skilled mediator with 'natural talent, honed skills and accumulated experience'.

Amounts paid in mediated settlements are often lower than the amounts agreed in other settlements.